Dear Mr. Willford:
Below is the outline of our mutual understanding of the terms of the employment being offered to you:
Annual Salary : $35,000
Title : First six months as Senior Vice President, thereafter as President
Medical : Medical insurance coverage to you and your spouse by the current carrier, coverage to begin 1st of the month following the start date.
Car Allowance : $350.00 / month plus $0.15 per mile for business mileage (home to business miles are excluded).
Vacation : According to company policy.
Starting Date : January 25th or sooner, but no later than February 1st.
Relocation : Company will provide allowance of $1,000 per month for temporary relocation assistance against unit rental for up to six months. Upon permanent relocation company will allow additional relocation assistance to be mutually agreed upon within the parameters we have discussed during your visit.
Confidentiality : Confidentiality and non-compete agreement to be signed before the starting date.
Annual bonus program : The greater of:
- 4% of net profit of ABC before taxes and excluding Pennsylvania lawsuit expenses and / or revenues and excluding owners draws.
- .5 cents (1/2 cent) per pound of product sales over 30 million pounds. Example: 35 million pound annual sale will generate a bonus of $25,000.00, 40 million pound annual sale will generate a bonus of $50,000.00.
Bonus to be paid quarterly 30 days after closing of each quarter less 25% retention until year end at which time adjustments will be made up or down.
Please indicate your acceptance of the offer by signing below and faxing a copy to my attention at 123456789.
Thank you and if you should have any further questions, please do not hesitate to call me.
Sincerely,
Ronald Lando